Viper Energy (NASDAQ:VNOM) & Stratex Oil & Gas (OTCMKTS:STTX) Critical Analysis

Viper Energy (NASDAQ:VNOM) and Stratex Oil & Gas (OTCMKTS:STTX) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Institutional and Insider Ownership

87.7% of Viper Energy shares are held by institutional investors. 0.2% of Viper Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Viper Energy and Stratex Oil & Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	0	16	0	3.00
Stratex Oil & Gas	0	0	0	0	0.00

Viper Energy presently has a consensus price target of $55.93, suggesting a potential upside of 40.36%. Given Viper Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Viper Energy is more favorable than Stratex Oil & Gas.

Volatility & Risk

Viper Energy has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Stratex Oil & Gas has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Earnings and Valuation

This table compares Viper Energy and Stratex Oil & Gas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$860.39 million	13.36	$359.24 million	$3.46	11.52
Stratex Oil & Gas	N/A	N/A	N/A	N/A	N/A

Viper Energy has higher revenue and earnings than Stratex Oil & Gas.

Profitability

This table compares Viper Energy and Stratex Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	37.84%	3.92%	3.28%
Stratex Oil & Gas	N/A	N/A	N/A

Summary

Viper Energy beats Stratex Oil & Gas on 10 of the 10 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

About Stratex Oil & Gas

Stratex Oil & Gas Holdings, Inc., an independent energy company, focuses on the acquisition, exploitation, and development of crude oil in Kansas and Texas, as well as non-operated working interests in North Dakota, Montana, Utah, Colorado, and Kansas. The company is also involved in the sale of oil and gas. The company was formerly known as Poway Muffler and Brake, Inc. and changed its name to Stratex Oil & Gas Holdings, Inc. in May 2012. Stratex Oil & Gas Holdings, Inc. is based in Salt Lake City, Utah.